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Tesla VS. The Natick auto dealers

Tesla VS. The Natick auto dealers

Submitted by cprenzl on Fri, 2013-01-25 16:22

Hello,
I would encourage everyone to send emails to any dealerships in the area to tell them to back off. I know thats what I'm doing. It's kinda fun :)
Something like LEAVE TESLA ALONE. Something to fill up their inboxes. :)

Captain_Zap |
25 janvier 2013

I thought that the court decided that the dealers had no case there and that it's all over.

Brian H |
26 janvier 2013

It's being appealed.

L8MDL |
26 janvier 2013

Here's one contact to the Massachusetts State Automobile Dealers Association: Diane Russo at drusso@msada.org

IMHO they will continue to appeal this and draw it out as long as possible to cost Tesla money in the hopes that Tesla will give in and just let the dealers sell the car. I'm sure the states will take turns so it lasts for years.
Maybe Tesla should take one of those battery kids cars that I've seen in to court and ask why the dealer association has been suing for the rights to sell the car.

"dealer association has NOT been suing for the rights to sell the car. "

sflahert |
26 janvier 2013

Looks like someone is worried that the party is about to be over! 100 years of protection from the Commonwealth of MA is a lot to lose. Change is a great thing! If these people were in charge of telecomm, we'd still be making phone calls from payphones.

jchangyy |
26 janvier 2013

Just to play the devil's advocate, what would be the down side of selling Tesla at a dealership, as long as we all get the same pricing?

sflahert |
26 janvier 2013

My experience at most dealerships I've visited is that sales staff is not knowledgeable about the cars they sell. They could not do the Model S merit.

jkirkebo |
26 janvier 2013

They can't force the same pricing if they sell via independent dealers. The dealers will be free to set whatever price they want and charge huge markups.

Sudre_ |
26 janvier 2013

jchangyy, how would the dealer make any money if they sell the cars for the same price Tesla sells them to the dealership?

or

Why should Tesla take a loss selling cars to the dealership?

Carefree |
26 janvier 2013

I don't like the dealer model either - in fact I hate going to an auto dealer and having to put up with their nonsense comments and "smart" snipes.

Having said that, it sure would make life easier for Tesla. They would only have to deal and communicate with a limited number of dealerships and not thousands of excited and impatient customers like me:-)

shop |
26 janvier 2013

The problem isn't selling at dealerships. I don't think Tesla cares one way or another if their cars got sold at dealerships. The problem is that they ALSO want to sell in shopping malls. There are no dealers in the interior of a shopping mall. Their thinking, and I think it is correct, is that the Tesla is very unique and very few people know about it. So they want to get in front of consumers, and their stores are an integral part of their marketing plan. As they say, by the time you end up at a dealer, you've already done research and whittled down the choices. But most people don't know about Tesla, so they get left our of the equation.

Tesla may end up with an independent dealer network eventually, but if they do, laws like the ones in MA will actually be an impediment to setting them up.

The course is set. For better or worse (and I believe better), Tesla is pregnant with the no dealer model. I think Musk is right, makes perfectly valid points and has set a path that can not be undone.

If you do not want the competition to kill you, remove as many weapons from their arsenal as possible. Build everything you can and buy only from vendors that have little or no large OEM business. Sell yourself and stay way clear of any existing dealers as, by definition, they are beholden to one of your competitors. Musk must be a student of history as he has set a path that is trying not to remake old mistakes.

Vall |
26 janvier 2013

Tesla simply wants to be in control of their product, with all he benefits and downsides this brings. And they should be left alone to do as they please with their product and their business model. The whole concept from the beginning was to have stores in malls, where people can get informed, and each car is built to order. The dealers want to sell the car, but they know that if tesla gives one dealer a franchise, tesla will IMMEDIATELY lose the right to sell alone. Why do they want to sell it? Markups and service fees.

DonS |
27 janvier 2013

Dealers are running scared because the only people who like the current system are the ones making money off of it. Customers universally hate the dealer system and the slimy sales people.

Tesla is not cheap, but it is fair. Unlike the typical car dealer, Tesla sales people don't make you feel like the sales person is specifically out to screw you over. There is no second guessing whether the guy before and after got a better deal than you.

Brian H |
27 janvier 2013

DonS;
Yeah, got to know an ex-dealer current car salesman a few years ago. Took real delight in describing how he could/did shaft anyone who failed to "respect" his judgment and advice. And make no mistake; those guys are HUNGRY for the next sale. Especially if they've had a dry spell.

I suspect there's a very high % of low- medium-functioning psychopaths in the "profession".

OT PS: interestingly, a recent study put Surgeons in the top 10 favorite psychopath occupations, and Doctors in the bottom 10. Access to scalpels makes the diff, I bet.